Janie L. Mines. BS, General Engineering, United States Naval Academy (1980) at the. June Janie L. Mines All rights reserved.

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1 Intgratd Chang Managmnt by Jani L. Mins BS, Gnral Enginring, Unitd Stats Naval Acadmy (1980) SUBMITTED TO THE ALFRED P. SLOAN SCHOOL OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION at th MASSACHUSETTES INSTITUTUTE OF TECHOLOGY Jun Jani L. Mins All rights rsrvd. Th author hrby grants to MIT prmission to rproduc and to distribut to MIT studnts papr and lctronic copis of this thsis documnt in whol or in part. Signatur of Author Alfrd P \Sloan School of Managmnt May 1998 Crtifid by: John Van Maann Erwin H. Schll Profssor of Organizational Studis Thsis Suprvisor Accptd by: -Susan C. Lowanc Dirctr, Sloan Fllows Program M A(7-V~ A S S'1

2 Intgratd Chang Managmnt by Jani L. Mins Submittd to th Alfrd P. Sloan School of Managmnt on May 6, 1998, in partial fulfillmnt of th rquirmnts for th dgr of Mastrs of Businss Administration ABSTRACT Most businsss ar activly sarching for comptitiv advantag. It is that illusiv uniqu trait that will allow thm to outprform thir comptitors in th marktplac. Many businsss dpnd upon nw products, advancd tchnology, scrt formulations, patnts, copyrights and / or novl procsss to giv thm that comptitiv dg. But with th rapid flow of information, lack of copyright and patnt protction in many countris, and ability to quickly copy tchnology and backwards nginr formulations, ths advantags ar both short livd and xpnsiv. Businss is bcoming incrasingly awar that th primary sourc of sustainabl comptitiv advantag lis in th capability to manag chang ffctivly, fficintly, and flxibly. Many tchniqus ar advancd attmpting to succssfully manag chang including Rstructuring, Rnginring, Total Quality, tc. Th succss of ths tchniqus has bn limitd primarily du to th limitd scop of th mthodology. Thy focus on th chang subsystms of procsss, organization, popl, and tchnology as thir primary mdiums for chang. Th spcific trm Chang Managmnt typically rfrs to only th human transition activitis rlatd to th chang. Sldom ar all of ths subsystms accountd for or, vn mor rarly, intgratd into a comprhnsiv plan. Th objctiv of my thsis is to provid a practical mthodology that intgrats all subsystms of chang managmnt to accomplish businss objctivs. This thsis proposs that ths subsystms cannot b managd as sparat projct subtams with sparat projct plans but must b part of an intgratd comprhnsiv ffort that has its roots in th stratgic plan of th organization. Th mthodology proposd bgins with th approval of a chang projct and allocation of rsourcs and nds with implmntation and monitoring of a projct. This documnt uss common businss languag. It is focusd on th nds of practitionrs within th company attmpting to succssfully manag chang. Th rsarch includs a litratur sarch, a rviw of svral qustionnairs, survys and intrviws with managrs discussing thir chang mthodology and managmnt fforts. This thsis addrsss th following qustions:. Why manag chang?. What subsystms must b includd in an intgratd chang managmnt approach?. What ar th rprcussions for xcluding a subsystm(s)?. What would an intgratd mthodology look lik? Thsis Suprvisor: Titl: John Van Maann Erwin H. Schll Profssor of Organizational Studis

3 ACKNOWLEDGEMENTS I would lik to xprss my sincr thanks to Profssor John Van Maann for his patinc, insight and hlpful suggstions in writing this thsis. I would lik to also thank collagus from my company - Kim Alln and Karla Conta - for supporting m with information. I spcially thank my company for allowing m to hav th grat opportunity of larning at th Sloan School of Managmnt, Massachustts Institut of Tchnology (MIT). I am spcially gratful to my mothr, Daisy S. Mins, who card for my son for th past yar. Without hr sacrific non of this would hav bn possibl.

4 INTEGRATED CHANGE MANAGEMENT (ICM) TABLE OF CONTENTS Chaptr 1 Chaptr 2 Introduction A. Why Manag Chang B. Th Intgratd Chang Managmnt (ICM) concpt C. Purpos of th Thsis Rsarch Mthodology A. Survys B. Litratur Sarch C. Cas Study Pag Chaptr 3 Chaptr 4 Chaptr 5 Chaptr 6 C1hang Managmnt in Prspctiv A. Currnt Stat of Chang Managmnt B. Comparison to ICM C. Summary C MSCas Analysis A. Company Profil B. Projct Dscription C. Tam D. Mthodology Employd E. Rsults H. Summary ICM Mthodology Guid A. Introduction B. ICM Mthodology Co A. B. nclusion Summary of Ky Concpts Futur Implications Appndix A. B. Tools and Tchniqus Rfrncs

5 CHAPTER 1 INTRODUCTION WHY MANAGE CHANGE Most businsss ar activly sarching for comptitiv advantag. It is that illusiv uniqu trait that will allow thm to outprform thir comptitors in th marktplac. Many businsss hav dpndd upon nw products, advancd tchnology, scrt formulations, patnts, copyrights and / or novl procsss to giv thm that comptitiv dg. But with th rapid flow of information, lack of copyright and patnt protction in many countris, and ability to quickly copy tchnology and backwards nginr formulations ths advantags ar both short livd and xpnsiv. Customrs hav bcom mor sophisticatd and dmanding (Cooprs & Lybrand, 1995). Markt ladrs ar thos companis that not only rspond quickly to changing customr rquirmnts but thos that can prdict thm and bhav proactivly. Ths companis ar valu addd to thir customrs bcaus thy possss th knowldg to assist thm in dfining improvd procsss and th capability to quickly nabl implmntation. Businss is bcoming incrasingly awar that th primary sourc of sustainabl comptitiv advantag lis in th ability to manag chang ffctivly, fficintly, and flxibly (Hammr, 1994). On of th fw invitabilitis is chang. It will occur. Whthr chang manags th company or whthr th company can manag it for comptitiv advantag is contingnt upon chang managmnt capabilitis. Chang Managmnt is th capability of an organization to succssfully transition from th currnt stat to th dsird stat. Businsss that ar managd by chang ar constantly fighting firs. Thy ar sldom catgory ladrs and ar usually playing catch up. Thy oftn display traits that plac thm at a

6 prformanc disadvantag GMA (1996) provids a list of twlv dysfunctional charactristics of firms that ar "managd by chang!" Thy ar:. Lack of focus Significant activity with fw accomplishmnts. Marginal to unsatisfactory financial prformanc. Low mploy moral. Inadquatly skilld labor. Poor communication. Outdatd fragmntd tchnology solutions. Lack of information accssibility and timlinss. Infficint, unfocusd, costly organization. Frqunt organizational changs. Customr srvic failurs (products, dlivry, valu-addd, tc.). Infficint procdurs. Poorly documntd and communicatd procdurs So why hav all companis with ths charactristics not gon out of businss? Many of thir comptitors fac th sam issus. Th company that is abl to dvlop a comprhnsiv chang managmnt capability first will mrg as th ladr and will b difficult to ovrtak. Sam Walton of Wal-Mart statd that his ky to succss was his ability to chang to addrss customr and businss nds mor quickly and fficintly than his comptition (Hammr, 1995). INTEGRATED CHANGE MANAGEMENT (ICM) CONCEPT Many tchniqus ar advancd attmpting to succssfully manag chang including Rstructuring, Rnginring, Total Quality, tc. Th succss of ths tchniqus has bn limitd primarily du to th limitd scop of th mthodologis usd to implmnt th chang. Thy focus on chang subsystms - procsss, organization, popl, and tchnology - as thir primary mdiums for chang. Th spcific trm Chang Managmnt traditionally rfrs to only th popl transition activitis rlatd to th chang. Sldom ar all of ths subsystms accountd for or vn mor rarly intgratd into a comprhnsiv plan. Som managmnt consulting agncis ar attmpting to accomplish this task with combinations of subsystms with

7 diffring lvls of succss. Wbstr ( 9 th dition, 1988) dfins a systm as a "rgularly intractiv or indpndnt group of itms forming a unifid whol". Th sam rfrnc dfins a mthodology as "a particular procdur or st of procdurs". In this thsis chang managmnt is dtaild as a complx systm of intrtwind activitis that must b orchstratd to occur at th appropriat tims. This orchstration ffort is dtaild in th ICM mthodology. Ths activitis ar drivn by th stratgy / financial objctivs of th businss as st by snior managmnt. Stratgy is critical whn daling with chang (Hax and Majluf, 1996). This systm is composd of four major subsystms focusd on implmnting a stratgic initiativ. This thsis proposs that th organizational capacity for succssful chang rlat dirctly to th ability of th chang subsystms to nabl th adjustmnt. Th gratr th ability to manag chang, th fastr and mor ffctiv ar th rsulting businss solutions whil minimizing th invitabl disruption causd by th chang (CSC Indx, 1995). Although thr is obvious ovrlap among subsystms, my rsarch and xprinc show that chang projcts ar oftn dividd into subtams that covr som or all of th subsystms dtaild blow. Each subsystm is catgorizd by th goals of th individual activitis within a subsystm, whthr it b to prpar popl, chang th way work is don (procsss), acquir appropriat tools (tchnology), or align th businss structur (organization). To undrstand th Intgratd Chang Managmnt (ICM) concpt it is critical that ach subsystm b wll dfind. Fiv subsystms ar at issu:. Stratgy / Financial Objctivs - Businss objctivs and prformanc masurs intgratd in a plan to achivd th dsird outcoms. Procsss - Policis and procdurs for accomplishing work ncompassing inputs, valuadding activity and outputs. Tchnology - Information systms, control systms, softwar, machins and othr tools ncssary to optimally implmnt th chang

8 . Popl - th capabilitis, rsourcs and motivations of mploys to nabl chang including compnsation, communication, chang radinss, and training and dvlopmnt. Organization - staffing and businss structur that allows groups of popl to achiv a common purpos via division of labor. Whn ths subsystms ar not synrgistically managd, significant difficultis mrg. Thy may rang from a brif disruption that tmporarily divrts attntion away from work, to violnc and sabotag (GMA, 1995). Each subsystm should b addrssd across th phass of chang. Th mthodology proposd in this thsis involvs fiv phass:. Dfinition of th objctiv and ncompassing businss procsss. Collction of inputs, data, bnchmarks, and prformanc masurs rlating to th objctiv and procsss. Analysis of th collctd input to dtrmin th "root causs" of obstacls to achiving th objctiv. Dsign nw businss procss that addrss th obstacls to achiving th objctiv. Implmntation and continuos improvmnt of th rdsignd procss to mt currnt and futur businss rquirmnts PURPOSE OF THE THESIS Th objctiv of this work is to provid a practical mthodology that intgrats th subsystms of chang managmnt to accomplish businss objctivs. This thsis proposs that ths subsystms cannot b managd as sparat projct subtams with sparat projct plans but must b part of an intgratd comprhnsiv ffort that is linkd to th stratgic plan of th organization. This thsis xpands th gnrally accptd concpt of chang managmnt as prtaining only to popl issus to th broadr concpt of all activitis rquird to implmnt succssful chang (chang managmnt subsystms). Th mthodology rsulting from this thsis bgins at th approval of a chang projct and

9 allocation of rsourcs and nds with implmntation and monitoring of th chang managmnt ffort. This documnt uss common businss languag. It is focusd on th nds of practitionrs within a company attmpting to succssfully manag chang. In particular, I addrss svral qustions:. Why manag chang?. What subsystms must b includd in an intgratd chang managmnt approach?. What ar th rprcussions for xcluding a subsystm(s)?. What would an intgratd mthodology look lik? Th rmaindr of th thsis is organizd as follows: Chaptr Two dscribs th rsarch activitis for this thsis including slction critria for companis, survy format, litratur sarch and othr information sourcs. Chaptr Thr dfins th currnt stat of chang managmnt basd upon survys, th litratur sarch and intrviws. It compars th ICM mthodology and subsystms to th bst practics idntifid in th survy studid. Chaptr Four dtails th cas of a company implmnting major chang fforts. It includs th mthodology, subsystms, and rsults and compars thm to th ICM approach. Chaptr Fiv dfins a proposd intgratd ICM mthodology with fiv phass including dfinition, collction, analyss, dsign, and implmntation and continuous improvmnt. Each phas addrsss th ncssary activitis for ach subsystm (procsss, tchnology, popl, and organization) focusd on th stratgy/financial objctivs of th organization. Chaptr Six summarizs th ky concpts of th thsis and futur implications for chang managmnt. Appndix A contains instructions on using th tools and tchniqus outlind in th thsis txt.

10 CHAPTER 2 RESEARCH METHODOLOGY This chaptr dscribs th rsarch mthodology usd to gathr data for this thsis. This chaptr contains thr sctions. Th first sction dscribs th survys I rviwd. Th scond sction dscribs my litratur sarch. Th third sction dscribs a cas of a company implmnting a significant chang ffort. SURVEYS Two larg publishd survys wr usd as part of th rsarch. Ths survys wr usd bcaus thy wr rcnt, spcifically addrss chang mthodologis and rsults, and, as a rspondnt to ths survys, I was satisfid with information collction procss. Th survy topics wr "Bst Practics in Managing Chang" and "Bst Practics in Businss Procss Rnginring and Procss Rdsign". Both survys wr usd in ordr to gain a broadr prspctiv on chang fforts. Sinc nithr survy dfind th trms chang managmnt or businss procss rnginring xplicitly, th rsults wr prhaps skwd toward th prvalnt dfinitions of thos trms. For my purpos of dvloping a comprhnsiv approach it is important to rviw both studis. Th survys wr compltd in 1997 by almost 160 companis implmnting significant chang. ProSci conductd th survys on lin using th Businss Procss Rdsign (BPR) Ntwork to produc th rsulting study. Th BPR Ntwork is composd of businss profssionals within businsss, consulting firms, govrnmnts and univrsitis involvd in chang managmnt work. Th rspondnts wr individuals involvd in spcific chang projcts usually as facilitators or consultants. ProSci is a rsarch, training, and consulting company with offics in Nw Jrsy and Colorado. ProSci srvs businsss around th world with currnt information on businss procss rnginring and procss rdsign improvmnt tools and innovativ practics (ProSci, 1996).

11 Bst Practics in Managing Chang Th objctiv of th Bst Practics in Managing Chang study was to uncovr bst practics for managing th human sid of chang and for crating xcutiv sponsorship of chang initiativs. Th study involvd mor than 100 organizations from 22 countris on 6 continnts. Participant rvnus wr fairly vnly distributd ovr th rang from lss than 10 million dollars to ovr 5 billion dollars. Most chang projcts in this study involvd businss procsss, systms and organizational structur. Th primary businss procsss bing changd wr:. Information (computr) srvics. Manufacturing. Halth car srvics. Product dvlopmnt. Financ / banking. Human Rsourcs Mor thn 50% of th rspondnts implmntd significant procss changs. Mor than 90% of th participants implmntd changs across dpartmntal boundaris. Almost 50% xpct th chang to impact thir ntir ntrpris. Th siz of th staffs impactd by th chang avrag svral hundrd. Ovr 30% of th projcts impactd mor than 500 mploys. Bst Practics in Businss Procss Rnginring and Procss Rdsign Th Bst Practics in Businss Procss rnginring and Procss Rdsign study was conductd in th fall of 1996 and arly wintr of Th goal of th study was to uncovr important actual xprincs from projct tams that would b hlpful to othr tams. Th study usd th Intrnt to rach 57 organizations from 27 countris on 6 continnts. Companis participating in th study rangd from automobil manufacturrs to halth car firms. Thr was narly an qual split btwn both US and forign participants. Company

12 rvnus rang from 25 million to in xcss of 5 billion. Svral univrsitis, govrnmnt, military, consultants, and larg corporations wr that ar part of th BPR Intrnt ntwork wr includd in th study. Thir common focus was introducing radical chang in th way thy workd. Th findings of th study ar groupd into svn catgoris (ProSci, 1997):. Choosing a chang mthodology. Applying chang managmnt tchniqus. Undrstanding th rol of consultants. Forming an ffctiv tam. Engaging top managmnt. Knowing th "must do's" and "must not do's" of managing chang. Undrstanding th bnfits and rsults of th chang managmnt projcts For this thsis all aspcts of th two studis ar not rlvant. Information prtaining to mthodologis, tchniqus, bnfits, and rsults ar incorporatd as part of this thsis. LITERATURE SEARCH A sarch of svral databass including Lxis/Nxis, Dow Jons, and Data Sarch providd ovr 50 articls that wr rviwd of which 15 wr includd in th thsis. Additionally, 25 books wr rviwd. Th rsarch matrial obtaind was dividd into fiv groups including:. Chang Managmnt thory and mthodologis. Procss managmnt thoris and mthodologis. Businss procss rnginring. Information Systms dsign and implmntation. Stratgy. Financial Analysis. Organizational alignmnt

13 Within ths groups wr acadmic articls, businss prss articls, businss sminar matrial, and businss prss books and articls. Businss practitionrs, businss school profssors, consultants, or mthodology "gurus" wrot most of ths matrials. CASE STUDY Th Company Th cas study is about a major chang ffort in a food manufacturing company. Th company agrd to srv as a cas if thir idntity was not rvald. Thy will b rfrrd to as CMS for th purposs of this thsis. CMS has annual rvnus in xcss of 4 billion dollars and mploys ovr 15,000 popl worldwid. This cas focuss on part of th hadquartrs and fild sals organizations including approximatly 2,000 popl. Although CMS has wid distribution of thir products, most of thir oprations ar confind to North Amrica. CMS has bn activ in systmatic chang managmnt fforts for ovr 5 yars. During this priod thy hav dvlopd an intrnal mthodology for implmnting chang calld Procss Managmnt. A small prmannt staff of fiv popl facilitats stratgic chang fforts and has traind about 100 popl across th corporation to work on smallr chang fforts. Th procss managmnt concpt has bn introducd to almost all mploys in th company and ths mploys hav bn involvd to diffring dgrs in projcts. Th Projct Th spcific chang ffort covrd in th cas is calld Promotion Granting and Excution (PG&E). PG&E is th procss of intrnally and xtrnally communicating trad promotions, granting trad promotion dal monis to customrs, invoicing and applying cash from customrs, and making paymnts to customrs for prformanc orintd promotional programs. Th xcutiv staff chos this procss bcaus it was idntifid as a "root caus" issu undrmining most of th prvious smallr chang fforts. Ths arlir fforts focusd on

14 IImanaging symptoms rlatd to th infficincis of th largr procss. Th chang ffort lastd from th fall of 1994 to spring of It had th following gnral objctivs: 9 To incras rvnus through nhancd slling tools and information to bttr focus stratgy dvlopmnt with individual customrs, classs of trad (rtailrs, distributors, wholsalrs, tc.) and / or markts (fund raisrs, ag groups, gndr, impuls buyrs, tc.) " To incras cash flow through dduction avoidanc and/or timly rsolution of dductions " To rduc costs associatd with transaction rrors " To rallocat of non-valu addd work rsourcs to activitis that dirctly supportd customr and businss objctivs Th rsarch consistd primarily of intrviws I conductd in th spring of 1997 and/or 1998 using a combination of survys and mtings with:. Excutiv Improvmnt Tam (EIT) mmbrs (th ntir xcutiv staff). Procss coach ( an xcutiv staff mmbr). Procss Improvmnt Tam (PIT) mmbrs (dsign tam slctd by th EIT). Othr mmbrs of th ffctd workforc Th EIT and PIT intrviws wr focusd dirctly on th chang mthodology and attributd rsults. Intrviws with mploys focusd indirctly on th mthodology and mor dirctly on th businss rsults ralizd from th rdsignd procsss. Additionally printd matrials rviwing th tam, mthodology, tchniqus and rsults wr rviwd as part of th rsarch. Intrviws A list of qustions was usd to focus discussions that occurrd in mtings and focus groups I conductd. Th list was dvlopd addrssing th main aras of rsarch intrst including:. Th chang mthodology dfinition (including chang managmnt subsystms). Satisfaction with th chang mthodology. Application of th chang mthodology. Rsults Th qustionnair dtails ar includd in th cas in Chaptr Four.

15 Ths gathrings includd all th intrviws at sparat forums. Th qustionnairs wr administrd at six mtings or forums to supplmnt th intrviws. Th list of qustions focusd th group intrviws, providd writtn documntation, providd suggstions for improving th chang mthodology, and srvd to assss th rsults of th projct (as wll as th application of th mthodology). All mtings wr schduld wll in advanc and EIT and PIT mmbr attndanc was mandatory. Othr mploys wr schduld for six mtings hld throughout th day and participation xcdd 70% of ffctd hadquartrs prsonnl (approximatly 1400 rspondnts). Th mploy mtings wr in opn hous format during which a status rport was providd on th projct with currnt procss rdsign and a hands-on opportunity to try th nw computr systm. Door prizs wr awardd basd on nams pulld from th group of compltd qustionnairs and snacks wr providd. Th data rsulting from th qustionnairs and th simultanous intrviw discussions wr input into spradshts and avrag rsponss wr calculatd for ach qustion. Additionally gnral commnts wr capturd for ach qustion. This intrviw information rsulting from th discussions srvd to clarify th commnts writtn on th qustionnairs and provid additional input. SUMMARY Th rsarch matrials allow m to dscrib th chang managmnt mthodology and rsults from a broad prspctiv. Th CMS cas provids a spcific prspctiv through which to viw a chang managmnt mthodology. Th combination of th broad and spcific prspctivs is usd in this thsis to substantiat th concpt of Intgratd Chang Managmnt (ICM).

16 CHAPTER 3 CHANGE MANAGEMENT IN PERSPECTIVE Currnt Stat of Chang Managmnt Dfining th currnt stat of chang managmnt is as illusiv as obtaining a consistnt dfinition of th concpt of chang managmnt. Th currnt stat is dtaild in this sction by using litratur to provid gnral dfinitions, mthodologis, and concpts. Additionally, th rsults of th two survys ar usd to outlin currnt mthodologis and provid prspctiv on th succss rat of ths mthodologis. Dfinitions, Mthodologis, and Concpts Th prvailing dfinition of chang managmnt focuss on managing th mploy's prsonal transition as th businss is bing transformd. Most dfinitions of chang managmnt focus on communication, training, dvlopmnt, staffing, rwards / rcognition, and chang radinss. Businss transformation fforts apply this dfinition of chang managmnt and includ activitis for procss rdsign and tchnology dvlopmnt in an attmpt to dfin and implmnt chang (IBM, CSC Consulting, and KPMG, 1997). This thsis proposs that ths activitis ar rarly synrgistically intgratd and, as a rsult, lss than optimal rsults ar achivd. Various dfinitions, mthodologis and concpts ar associatd with implmnting chang as xmplifid by th following: Dfinitions. Chang is th procss of aligning popl, rsourcs and cultur with a shift in organizational focus (Cooprs & Lybrand, 1995).

17 . Rnginring is th fundamntal rthinking and radical rdsign of businss procsss for dramatic improvmnts in critical masurs of prformanc such as cost, quality, srvic and spd. Information tchnology is an ssntial nablr (Hammr and Champy, 1993). Concpts. Th cor dilmma for xcutivs and ladrs is how to maintain stability whil simultanously crativly adapting to outsid forcs; stimulating innovation; changing assumptions, tchnology, working mthods, rols and rlationships, and th organizational cultur. Th chang procss involvs dfining th futur stat of th businss, assssing th prsnt and managing th transition to achiv th dsird rsults (Bckard and Harris, 1987).. Chang is basd on th organization's larning capability and ability to quickly manag major transformations (Schin, 1992).. Rnginring should b focusd on implmnting a particular stratgy (Portr, 1995).. Th installation of SAP (a procss focusd, ntrpris-wid information systm) in conjunction with procss rnginring is part of a company's stratgy to succd in an industry that has undrgon radical changs in rcnt yars (Millr Frman Publications, 1996).. Th ssntial points for rsponding to chang ar undrstanding th changs taking plac in th world, undrstanding th ffct on th organization, making th organizational transition, and larning nw tchnologis and nw skills in rspons to changs in th job (Ozki and Asaka, 1990). Chang Mthodologis. Kurt Lwin's basic chang modl of unfrzing, changing, and rfrzing is a concptual foundation upon which chang thory could b solidly built ( Schin, 1995).

18 . Th Balanc Scorcard can b usd to guid currnt prformanc and targt futur prformanc by using four catgoris of masurs - financial prformanc, customr knowldg, intrnal businss procsss, and larning and growth - to align all activity and idntify nw procsss to mt customr and sharholdr objctivs (Kaplan and Norton, 1996).. Th ffctiv and succssful managmnt of chang rquirs th fficint us of projct control mthods including updating status, analyzing th impact, acting on variancs, publishing th rvisions, and informing managmnt (Knutson and Bitz 1991).. To mak th transition toward improving quality and productivity whil rducing cycl tim and cost th organization must undrstand customr rquirmnts; dfin th driving businss procsss; crat, train and support tams; stramlin and simplify; masur and provid fdback; bnchmark, us tools; and continuously improv (Harrington, 1991).. Th Malcolm Baldridg critria ar usd by organizations to valuat thir progrss toward bcoming th bst in thir filds. This critrion consists of ladrship; stratgic planning; customr and markt focus; information and analysis; human rsourc dvlopmnt and managmnt; procss managmnt; and businss rsults (Brown, 1997).. Any organization that hops to thriv in th 21st cntury must bcom procss cntrd. Although this is not a structural chang it has dp structural implications. Procss cntring facilitats chang. It has four stps - idntify company procsss; mak vryon awar of th importanc of ths procsss, masur procss prformanc; and manag th procsss (Hammr, 1997). Th synopsizd rfrncs abov suggst th wid rang of intrsts chang thorists and practitionrs follow. Hundrds of diffrnt dfinitions, concpts and mthodologis xist. I hav chosn to group chang programs into four aras or subsystms focusd on th spcific chang ffort and alignd with th stratgy of th organization. Thy ar labld procss, tchnology, popl, and organization. Th synrgistic intgration of th four subsystms is th problm I addrss and it is on I found missing from th litratur.

19 Currnt Chang Mthodologis This sction rviws th rsults of th two survys dscribd in Chaptr 2. This rviw substantiats my claim at th bginning of this work that all th chang subsystms ar not includd in many fforts and/or not bing synrgistically managd to optimiz th ffctivnss, fficincy, and final rsults of chang fforts. "Bst Practics in Managing Chang" Th rsults of th Bst Practics in Managing Chang survy indicat that most chang fforts hav thr major phass - planning, dsigning, and implmnting. Th survy also dtaild th major activitis that occurrd in ach stag. Chang Managmnt activitis during th planning stag includd:. Intrviwing sponsors to undrstand projct goals and scop. Educating th tam on chang managmnt and chang stratgis. Educating top managmnt projct sponsorship; stablishd a string committ. Dvloping a communication plan. Bginning communications to mploys rgarding th nd for chang. Idntifying potntial obstacls to th chang and startd activitis to addrss thm. Chartring a chang managmnt tam and dvlopd a plan for managing chang Chang Managmnt activitis during th dsign phas includd:. Implmnting of th communication plan including sharing th chang justification; projct goals and timlin; and providing frqunt status rports to th organization. Collcting input from all lvls and aras of th organization and cratd fdback channls for mploys and managrs. Idntifying obstacls to chang and thir root causs and administrd a chang radinss assssmnt. Sharing lmnts of th rdsign with th organization. Maintaining top managmnt sponsors involvmnt in th procss and hlpd thm undrstand th sponsorship rol

20 Chang managmnt activitis in th implmntation phas includd:. Communicating to all mploys at all lvls, customizing th communication mthod to th audinc, and rpatd th mssag. Providing training and ducation to all impactd mploys and maintaind nthusiasm through a rapid pac of larning and activity. Establishing channls for mploy fdback to th implmntation tam. Using th chang managmnt tam as a knowldg sharing infrastructur across th divisions. Hlping top managmnt xcut thir sponsorship activitis, ncouraging thm to rmain visibl, and maximizing dirct intraction with mploys. Dvloping succss masurs and postd progrss charts whr thy could b sn by vryon Crtain chang managmnt activitis within th phass had a gratr impact on th succss of th fforts than othr activitis. Th rsults fll into four catgoris and hld tru across phass: 1. Communication. Opn and consistnt communication. Candid dialogu with all participants. Opnnss to fdback. Writtn communication updats. Intraction with all lvls of th organization. Fac to fac communication of th vision to mploys by th CEO or top managmnt sponsors 2. Prsonnl managmnt. Prsonnl changs to support th nw organization. Proactiv prsonnl managmnt (prsonnl changs whn ndd). Coaching for and if ncssary rmoval of problm managrs 3. Sponsor involvmnt. Snior managmnt dirctivs. Stakholdr involvmnt (involving managrs in th aras bing changd)

21 . Communicating constantly with stakholdrs so chang nvr took anyon by surpris. Support from all lvls of managmnt. Coaching providd by sponsors 4. Training. Training workshops on nw procsss, job rols and skill dvlopmnt. Pr-implmntation training of mploys focusing on chang managmnt Th majority of participants suggstd two opportunitis for improvmnt:. Hav mor training and accss to chang managmnt xprts. Incras th involvmnt of managrs and projct stakholdrs 65% of th participants flt thy wr sufficintly far nough along in thir chang to judg its ffctivnss. Almost half of this group rportd marginal to unsatisfactory rsults. 40% flt thir ffort was modratly succssful in achiving th objctivs. This thsis proposs that this high lvl of dissatisfaction is attributabl to th lack of a comprhnsiv ICM approach. "Bst Practics in Businss Procss Rnginring and Procss Rdsign" This study showd that chang mthodologis varid across organizations. Most of th diffrncs occurrd in th start-up and dsign phass. Th following list shows th most frquntly applid stps in th dsign phas and th prcntil of th rspondnts that compltd ach stp:. Gaind a dtaild undrstanding of th currnt procss - 87%. Conductd customr nds assssmnt - 76%. Assssd nw tchnologis and tools - 76%. Idntifid rquird organizational changs - 66%. Dvlopd nabling tchnologis - 67%. Dvlopd masurs to assss th rnginring procss - 61%. Cratd high lvl concpts and guiding principals as th foundation - 57%. Bnchmarkd othr companis - 57%. Conductd mploy nds assssmnt - 54%

22 . Dsignd th nw procss off sit - 35% Each company participating in th survy dscribd thir rnginring / rdsign mthodologis. Fiftn rprsntativ mthodologis wr dtaild in th study. No companis ar idntifid with thir particular mthodology, howvr, two of th mthodologis ar providd blow. Th first displays th last dtaild mthodology. It dscribs th chang activitis in trms of gnral stags (with amplifying activitis in parnthss). Th scond displays th most dtaild mthodology providd in th study. This mthodology includs th activitis compltd during th chang ffort and th organizational structur of th projct that includd a concpt tam (Lvl I Tam), a dsign tam (Lvl 2 tam), and an implmntation tam (Lvl 3 Tam). Last-dtaild Mthodology 1. Stag 1 - Discovry (bnchmark, bst practics, comptition, voic of customr, documnt "as-is") 2. Stag 2 - Rdsign (vision, high lvl dsign) 3. Stag 3 - Implmnt (dtaild dsign, pilot, implmntation) 4. Stag 4 - Continuos improvmnt Most-dtaild Mthodology Form Lvl 1 Tam (full tim) 1. Undrstand customr nds both domstic and intrnational 2. Idntify "ky factors succss" in businss prformanc 3. Prioritiz ky factors succss 4. Concptualiz an idal procss to tak us thr 5. Flow chart th procss activitis at a broad lvl 6. Communicat to managmnt and gain accptanc Lvl 2 Tam 1. Flowchart of th currnt activitis by th tam 2. Map with rspct to procss nvisagd (Function vs. Procss Matrix)

23 3. Dpict th gap btwn idal and currnt procsss 4. List constraints that prvnt raching th idal procss 5. Qustion th assumptions bhind constraints and rsolv 6. List constraints that could not b rsolvd 7. Flowchart th procss with unrsolvd constraint 8. Quantify th gap with rspct to xisting procss (us Industrial Enginring symbols) 9. Propos procss to managmnt and gt approval 10. Form lvl 3 tam and dissolv lvl 2 tam Lvl 3 Tam 11. Carryout job dsign, structur, documnts, dsign of mting, masurs of prformanc for ach procss, prsntation tmplats, and audit systm dsign 12. Prsnt to managmnt with cost bnfits 13. Rsolv th constraints Ths two chang mthodologis wr ssntially quit similar. Thr is a significant procss focus to ths mthodologis with minimal or no rfrnc to th othr chang subsystms (popl, tchnology, and organization). Th following activitis wr rportd by th rspondnts in th survy as bing th most important to achiving projct succss: 1. Managmnt support / chang managmnt - 44% 2. Projct Planning - 18% 3. Procss and tchnology dsign - 18% 4. Documnting currnt procss - 10% 5. Othr - 10% Ths activitis addrss th inclusion of th popl, procss, and tchnology subsystms with som rfrnc to planning although not ncssarily stratgic planning. Th rspondnts rcognizd ths subsystms as important to th succss of thir chang projcts. Rspondnts indicatd th activitis most likly to b addd in thir nxt projct. Ths ar listd blow:

24 "Chang managmnt" stps to add:. Mor focus on chang managmnt. Mor prsonnl orintd chang managmnt (training, compnsation, tc.). Bttr communication. Mor stps to nsur buy-in at oprational lvls. Mor chang managmnt fforts. Dsign, training, and dvlopmnt programs to prpar mploys for th changs bfor cutovr. Bttr chang managmnt stratgy. Hav xprincd Businss Procss Rnginring (BPR) consultants to work dirctly with chang managmnt. Broadr involvmnt of tangntially rlatd lmnts of th organization. Additional rprsntation from cross functional organization and us of mor sophisticatd tools. Mor procss work groups and mtings "Managmnt Involvmnt" Stps to Add. Bring mor snior managmnt into th procss. Closr contact with top managmnt. Mor stakholdr involvmnt. Solid and total commitmnt of top CEO. Mor chckpoints with snior managmnt Whn askd what stps thy would liminat from th chang mthodologis, rspondnts indicatd th following:. Do not dfin all th procsss at onc. Do not hav a long, drawn out analysis of th currnt procss, analyz th "as-is" procss at a high lvl and do it quickly Rspondnts said thy spnt thir tim during th rnginring procss in th following activitis: * Procss / systms dsign - 23%

25 . Dploymnt implmntation - 20%. Procss / Systms dvlopmnt - 19%. Data gathring and larning - 18%. Projct planning / tam slction - 12%. Approvals - 8% Th avrag projct lastd 19.7 months, with a man tim of 18 months. Th fdback from this study focuss primarily on th popl subsystm as lacking from thir mthodologis. Prhaps this occurrd bcaus th traditional dfinition of rnginring has a procss and/or tchnology subsystm focus. Limitd dfinitions of chang managmnt and rnginring rquir that th rsults of th two survys b combind to obtain a mor complt pictur of what is occurring in chang fforts. Whn rspondnts wr spcifically askd how thy dividd thir tim btwn procss dsign, systm chang, organizational chang and job rol chang, thy answrd as follows:. Procss chang - 39%. Systms chang - 27%. Job rol chang 18%. Organizational chang - 16% Although this qustion rvald that participants flt thy spnt tim on all four of th major subsystms, this is not vidnt by rviwing th rprsntativ chang mthodologis providd in th study. Littl mntion is mad of ths subsystms until th rspondnts wr spcifically askd for th prcntag of tim spnt prforming thos tasks. Prhaps this implis that all ths subsystms wr not managd as intgratd activitis in th chang fforts. Most projcts (about two-thirds) wr not prpard to dclar succss or corrlat that succss to a spcific mthodology. Evn compltd projcts wr still valuating thir rsults. 33% of th participants wr far nough along to valuat th impact of thir projcts. Of this group 33% said thy suffrd a drop in oprational fficincy from 10-30%. Th rmaining 66% of this group indicatd improvmnts in tim, cost, quality, and customr satisfaction.

26 Thr is significant ovrlap in th chang managmnt and rnginring mthodologis. This confirms th ida that th gnral mthod for implmnting chang ("what to do") is fairly standard and accptd. This thsis proposs that th challng lis in how th chang subsystms- popl, procss, tchnology, and organization focusd on stratgy/financial objctivs - ar managd ("how to do it'). Ths fforts cannot b managd as sparat projct subtams with sparat projct plans but must b part of an intgratd comprhnsiv ffort that has its roots in th stratgic plan of th organization. COMPARISON TO ICM Each study rsultd in a rcommndd mthodology with spcific rcommndd activitis basd upon th fforts of th succssful rspondnts. This sction compars th rcommndd phass and activitis of th studis with an intgratd chang managmnt (ICM) mthodology focusd on implmnting th stratgy of th organization. ICM consists of fiv phass with four chang subsystms (procss, popl, tchnology and organization) applid across th phass. Th fiv ICM phass includ:. Dfinition of objctivs and procsss that achivs th objctivs. Collction of data applicabl to th objctivs and procsss. Analysis of data collctd to dtrmin obstacls to achiving th dsird objctivs. Dsign of a procss that liminats th obstacls and achivs th objctivs. Implmntation and continuous improvmnt of th rdsignd procsss This mthodology is th rsult of almost 20 yars of xprinc and rsarch as a chang managmnt practitionr and th rsarch discussd in this thsis. A comparison rvals a dirct corrlation btwn th phass of th ICM mthodology th phass of th mthodologis providd in th two studis. This substantiats th gnral format if th ICM mthodology as bing consistnt with th currnt bst-dmonstratd practics. Th tabl on th following pag shows how th phass of ICM rlat to th phass of th rcommndd mthodologis outlind in th tabl.

27 Tabl 3-1 Phas Comparison Tabl Chang Managmnt Phass Rnginring Phass 1CM Phass. Planning. Planning/tam slction * Dfinition of objctiv * Approvals and procss. Dsign. Data gathring and 0 Collction of data larning. Analysis of data. Procss/systm dsign. Dsign of procss. Implmntation. Dploymnt /. Implmntation / Implmntation continuous improvmnt Subsystm Comparison Th activitis in ach phas of th two mthodologis rcommndd in th two studis also dmonstrat which ICM subsystms should b applid and whn thy should b usd. To undrstand th Intgratd Chang Managmnt (ICM) concpt it is critical that ach subsystm b dfind. Fiv subsystms ar at issu:. Stratgic Plan - Businss objctivs that ar long trm and structural in natur that dfin th fundamntal way in which businss will b conductd. Th tactics ar th implmntation tools of th stratgy. Chang fforts ar oftn synonymous with stratgic tactics.. Procsss - Any activity or group of activitis ncompassing inputs, valu-adding activity and outputs to an intrnal or xtrnal customr. Businss procsss ar srvic procsss and all procsss that support manufacturing procsss (.g., ordr fulfillmnt procss, payroll procss, and dmand gnration procss). Thy consist of a group of logically rlatd tasks that us th organization's rsourcs to provid dfinitiv rsults in support of th organizations objctivs.. Tchnology - Th information systms, control systms, softwar, machins and othr tools usd to optimiz mploy prformanc. It incrass spd, quality and flxibility and crats nw, diffrnt and ffctiv procss oprations. Information tchnology facilitats

28 th coordination of autonomous units linkd togthr through information. Tchnology is critical to optimal implmntation of many chang initiativs.. Popl - Th capabilitis, rsourcs and motivations of mploys that crat a rsilint organization capabl of constant and positiv organizational chang in rspons to constantly changing nvironmnt. Th primary nablrs includ compnsation, communication, chang radinss, and training and dvlopmnt.. Organization - Th administrativ and functional structur that allow popl to achiv a common purpos via division of labor. Although organization alon is sldom a chang drivr it can b an nablr. Aftr procsss ar optimizd and th appropriat tchnology is mployd th organization must b valuatd to nsur that it is supportiv of th nw procsss. Basd on th limitd scop of th dfinition of th concpts "chang managmnt" and "rnginring "th rsults of th two survys must b combind to gt a comprhnsiv pictur of what is actually occurring as organizations attmpting to manag chang. Tabl 3-2 combins th primary activitis of both of th mthodologis prsntd in th survys and compars th ICM subsystms (including th stratgy componnt) to ths activitis. In th ICM mthodology ths activitis would b synrgistically managd to produc rsults. Th tabl dos not indicat th timing of subsystm activitis within th fiv phass.

29 Tabl 3-2 1CM Subsystm Comparison 1CM Subsystms Activitis of Combind Chang Managmnt and BPR Mthods Stratgy/Financial * Dfin businss dirction Objctivs. Idntify critical businss issus. Dvlop vision and valus. Dvlop a businss cas. Undrstand customr nds. Idntify ky factors of succss in businss prformanc. Idntify and communicat businss rason for chang. Intrviw sponsors to undrstand scop and goals. Chartr a tam and dvlop a plan Popl. Educat th tam and managmnt. Dvlop and xcut a communication plan. Maximiz input from ntir organization. Implmnt fdback mchanisms. Maintain managmnt involvmnt. Shar status. Dvlop training workshops (nw procsss, job rols, skill dvlopmnt). Pr-implmntation training on chang managmnt Procss 0 Dfin procsss that ar critical to organizational prformanc * Dfin projct scop inclusiv of critical procss(s) Documnt high lvl critical activitis within th chosn procss " Dfin mor dtaild "as-is" procss * Dfin dsird procss to achiv businss goals * Idntify th gap btwn th as-is and th dsird procss (obstacls) " Rdsign procss rmoving th gap by liminating th root caus of obstacls * Pilot th rdsignd procss * Implmnt procss * Continuously improv Tchnology * Implmnt nw hardwar and architctural tchnologis Implmnt nw information managmnt tchnologis Organization * Assss currnt organizational structur * Rdsign position dscriptions and rward systms in lin with th procss rdsign * Implmnt organizational and cultural changs " Implmnt prsonnl changs to support th nw organization

30 SUMMARY Th comparisons outlind in this chaptr dmonstrat that thr ar similaritis btwn my proposd ICM mthodology and subsystms and what is currntly bing don in organizational chang fforts. "What should b don" is not th issu. Th issu is how and whn it should b don. Th subsystms, which ar crucial to th ICM approach cannot b managd as sparat projct subtams with sparat projct plans but must b part of an intgratd comprhnsiv ffort that is rootd in th stratgic plan of th organization. Th ICM mthodology outlind in dtail in Chaptr 5 intgrats th subsystms within th phass and activitis to achiv succssful chang. Th matrials in this chaptr srv to substantiat th basic mthodology phass and activitis to b includd in th proposd ICM approach outlind in Chaptr 5. Thy also mphasiz th point that this is not nough to nsur succss. Th businss cas prsntd in Chaptr 4 will furthr dmonstrat th nd for intgratd chang managmnt.

31 CHAPTER 4 CMS CASE ANALYSIS COMPANY PROFILE CMS is th lading North Amrican manufacturr of quality brandd dry pasta products, and has a varity of intrnational oprations. Th publishd mission of CMS is "to b a focusd food company in North Amrica and slctd intrnational markts and a ladr in vry aspct of our businss". In North Amrica, th goal is to nhanc thir numbr on position in pasta and xpand to othr food products". CMS's stratgy is focusd on a procss of chang that bgan four yars ago. Th objctiv of this procss is to nhanc stockholdrs invstmnt by improving fficincis and acclrating profitabl growth through a procss approach with a concntratd focus on: * What th company knows and dos bst * Quality products * First class srvic to customrs Rducing costs and improving fficincy in thir oprations * Adding valu to vrything thy do Ky to this valu-adding stratgy is valuating all oprations to nsur popl, rsourcs and ffort is appropriatly focusd on profitability and continuing to add valu to th stockholdr's invstmnt. Product and manufacturing lins ar facing dtaild scrutiny as part of this valuation. Critical to adding valu is th ovrall organizational structur. In ordr for th structur to support th stratgy it must support: " Profitabl growth " Quality products

32 " Efficint oprations " Flxibl rsponss to customr nds * Samlss oprations across th ntir corporation Th company has a traditional functional structur. CMS has a prsidnt with svn dirct rports with th titl of vic prsidnt. This group is calld th Excutiv Staff. Th organization is hirarchical. Th lvl of coopration across functions is marginal but crossfunctional task tams hav bn in plac for th last fw yars in an attmpt to improv this situation. Th rsults hav bn disappointing. PROJECT DESCRIPTION Th spcific chang ffort covrd in th cas is calld "Promotion Granting and Excution (PG&E)" as dfind in Chaptr Two. Th following abbrviatd chartr for th PG&E ffort was writtn by th Excutiv Staff and providd to an appointd dsign tam. Th chartr rads:. Objctiv: Optimiz th ffctivnss of th information and funds flows associatd with th Promotion Granting and Excution procss. Us Procss Managmnt to idntify and implmnt approvd rcommndations focusd on fastr, mor flxibl, fficint, and rsponsiv transactions that ar rror fr and xcption fr. Th Promotion Granting and Excution procss must achiv both improvd businss rsults and nhancd customr satisfaction.. Boundary Conditions: Th Company must b capabl of ffctivly granting all trms of Trad Promotion monis in a mans that mts customr xpctations and complis with Company policis. This Projct will not includ assssing th ffctivnss of various promotional programs.. Procss Masurs: Th Procss Improvmnt Tam will us numrous masurmnts to valuat th ffctivnss of th Promotion Granting & Excution procss rdsign. Th

33 masurmnts will valuat customr satisfaction, dductions, oprational transactions, and procss complxity. In addition, th Excutiv Staff providd a list of spcific outcoms th chang ffort was to dlivr. Th xpctd outcoms includd: 1. Ability to undrstand and communicat promotional programs 2. Improv lngthy, slow, frustrating rconciliation of purchas ordrs and dductions 3. Fr up sals forc from th rsolution of customr dductions from invoics 4. Mor accurat and timly information for valuation of programs 5. Ability to pay customr in th mannr dsird 6. Dlivr on sals commitmnt 7. Mor timly and accurat communication of programs to customrs 8. Fact gathring to dtrmin th amount of non-valu addd work 9. Dtrmin th ability to rallocat rsourcs 10. Dtrmin how sasonality ffcts th procss and propos rcommndations to cop with sasonality 11. Incras invoic accuracy 12. Dtrmin whthr th organization wants to procd with Procss Managmnt 13. Rcommnd propr organization structur to support th procss 14. Simplification/limination of paprwork 15. Timly and accurat rporting of promotion spnding 16. Mor timly paymnt of funds to and from customrs 17. Rduc th numbr of dductions rlating to promotion granting and invoicing 18. Fastr/ffctiv dduction rsolution 19. Concurrnc btwn th purchas ordr and th program rquirmnts at th point of th ordr 20. Know what th customr xpcts and satisfy th xpctation 21. Improv timing btwn sals rlas of information and EDI transfr of information to th customr

34 TEAMS Th dsign tam was to utiliz Procss Managmnt Principls in th valuation of th Promotion Granting and Excution procss to nhanc customr satisfaction and businss rsults by significantly improving quality, spd, flxibility, and rsponsivnss. Two initial tams wr slctd to mt ths goals. Th Excutiv Staff bcam th Excutiv Improvmnt Tam (EIT). Th EIT idntifid and assignd individuals to th Procss Improvmnt Tam (PIT) and providd th chartr. Thy also providd a Procss Managmnt Facilitator. Th Excutiv Improvmnt Tam (EIT) includd:. Prsidnt. Vic Prsidnt of Sals (VPS). Vic Prsnt of Markting (VPM). Vic Prsidnt of Logistics (VPL) -also th procss coach. Vic Prsidnt of Manufacturing (VPMf). Vic Prsidnt of Financ and Information Srvics (VPFIS). Dirctor of Human Rsourcs. Vic Prsidnt of Procurmnt Although th vic prsidnts of manufacturing and procurmnt wr not dirctly involvd in this ffort, thy rmaind a part of th ladrship bcaus PG&E was viwd as a dvlopmntal and training ffort as wll as a procss rdsign. Th VPL was assignd as th procss coach. H was rsponsibl for srving as a liaison to th EIT and providing gnral guidanc. Th Procss Improvmnt Tam (PIT) was dirctly rsponsibl for th rdsign of th procss to achiv spcific tasks, outcoms, and masurs as prviously dfind in this chaptr. Th PIT consistd of:. Facilitator. Dirctor of Sals Planning. Dirctor of Fild Sals. Dirctor of Markting

35 . Dirctor of Information Srvics. Dirctor of Customr Srvics. Managr of Logistics Planning. Managr of Human Rsourcs It was critical in an ffort of this siz that spcific tasks wr dfid for both tams. Thos tasks ar outlind blow. Th EIT tasks wr dfind as follows:. Chang own thinking to gt a total procss prspctiv. Dfin appropriat procss masurs to b usd in assssing prformanc. Provid rsourcs. Dvlop common objctivs supporting th proposd procss changs. Brak down organizational walls. Sarch out improvmnt opportunitis and prform as procss ownrs. St up dpartmnt improvmnt tams to support pit(s). Provid training and ducation to support nw procsss. Anticipat impact of procss changs and mak prparations. Monitor to prvnt procss dgradation. Rward procss contribution. Show ongoing intrst via rviws of status and rsults. Attmpt to find quivalnt jobs for popl whos jobs wr liminatd solly by Procss Managmnt Th PIT tasks wr:. Participat in PIT activitis (training, mtings, tc.). Conduct Procss Managmnt (PM) activitis within thir dpartmnts. Obtain appropriat rsourcs for th activitis to b prformd within thir dpartmnts. Accomplish procss objctivs. Solv procss-rlatd problms. Implmnt changs in dpartmnts. Lad subprocss tams as appropriat