organizational analyses 2500 Problem Solving Case Study and Proposal Report
Organisational Analysis
Organisations as Systems of Functionality
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Aims
To understand how organisations are seen as Systems of Rationality
Organisations as Systems
Functionality
Frameworks of Functionality
Supply Chain Operations Reference (SCOR)
Federal Government Process frameworks
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Analysis underpinned by Rationality
To discover the objective truths that define and govern organisations
Analyse ‘Truths’ as objective and accurate accounts of organisational properties (e.g. causal powers and laws) and the events within which management must act.
Through ‘truth’ organisations avoid being distracted by speculation, hunches and lies.
‘Truths’ possess instrumental value (practical utility).
By knowing the ‘truth’ organisations intelligently formulate and accomplish organisational goals.
The instrumental and objective value of ‘truths’ for management is in assisting them to establish control over an organisation, predict outcomes and learn about one’s powers and vulnerabilities.
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Organisations as Systems
A system is constructed of mutually and organically interrelated specialised parts called subsystems.
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Even human systems are identified: Concerned with social integration, what binds individuals and groups together.
Emile Durkheim’s Structural Functionalism.
The goal is to understand the ‘laws’ governing these systems and how each subsystem performs a particular activity and ‘functions’ to help reproduce the larger system.
An organisation is seen as a system comprised of four sub-systems (technology, social structure, culture and physical structure) located within a supersystem (i.e. global environment) of which it is a part.
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Organisations as Systems
Organisations are seen as comprising sub-systems of Functionality:
Technology
Engineering
Functionality (Business Processes)
Data
Information
Knowledge
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Functionality as Abstractions
Organisations conceptualised as partitioned entities
Departments within Organisations, i.e. functional areas
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Chief Executive
Research & Innovation
Marketing
Strategy
Human Resources
Production
Design
Maintenance
Quality Control
Concurrent Engineering
Business Intelligence
Supply Chain
Logistics
Information Technology
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Organisations as Systems and Places of Order
The Functional Approach:
Authority is allocated in ways to manage conflict and resistance to authority within organisations, e.g. positional power, reward power
Determines how power gets legitimised and distributed within organisations
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Organisational Functionality as Business Processes
Functionality as Business Processes
Generic Process Formalisms
Reference Models of Best Practice
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Achieving organisational stability through ‘routines’:
“routines preserve and transfer organisational knowledge and capabilities so that work can be successfully accomplished and coordinated” (Hatch and Cunliffe, 2006: 127).
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Modelling Functionality
Organisational Charts
Process Models/ Process Maps
Flowcharting
Swim-lanes
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Flowcharts
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Business Process Modelling – Process Chains
Integrated Definition Language (IDEF0)
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Event/Trigger
Process
Process
Input
Output
Event/Trigger
Resource
Resource
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B2
**** IDEF0 – You will find these diagrams in Visio.
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Introduce a formalism or diagrammatic representation of business process modelling
Business processes are often described in this syntax
Event/trigger
Inputs
Outputs
Resources required to perform the process
The IDEF0 technique is a modelling formalism, you may find this in MS Visio under process modelling
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Nesting of Process Chains
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Subprocesses
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Processes Provide Points of Measurement
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Process
Process
Input
Output
Event/Trigger
Event/Trigger
Resource
Resource
B1
B2
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Presentation Clarity: Swim-lanes
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A swim lane (or swim lane diagram) is used in process flow diagrams, or flowcharts, that visually distinguishes job sharing and responsibilities for sub-processes of a business process. Swim lanes may be arranged either horizontally or vertically. The swim lane flowchart differs from other flowcharts in that processes and decisions are grouped visually by placing them in lanes. Parallel lines divide the chart into lanes, with one lane for each person, group or subprocess. Lanes are labelled to show how the chart is organized.
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Building Blocks for Business Improvement
Basis for business improvement
Basis for business process re-engineering
Basis for quality systems and improvement e.g. Six Sigma, Statistical Process Control (SPC), Total Quality Management (TQM)
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Reminder: Achieving organisational stability through ‘routines’:
“routines preserve and transfer organisational knowledge and capabilities so that work can be successfully accomplished and coordinated” (Hatch and Cunliffe, 2006: 127).
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“Reference Models” of Best Practice
Best Practice Diffusion
Best practice is a valuable way to configure a process or a set of processes
Related to the automation of the process, a technology applied in the process, special skills applied to the process
A sequence for performing the process, or a proven method for distributing and connecting processes between organisations
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The Notion of Best Practice
Made possible by capturing what organisations “do” as process representations
Utilise process representations as instructions
As basis for measurement
As process improvement
As models of best practice
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Examples of Reference Models
Australian Government Business Process Interoperability Framework
Capability Maturity Model Integration (CMMI)
Supply Chain Operations Reference Model (SCOR)
Relevant Singapore Examples:
Enterprise Singapore – Business Excellence Framework
DSTA – Business Transformation Process https://www.dsta.gov.sg/docs/default-source/dsta-about/driving-business-transformation-through-a-process-centric-approach.pdf?sfvrsn=2
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Australian Government Business Process Interoperability Framework
Supporting a journey from process awareness to standardised processes, to interoperable processes, to enhanced networked capability, depending on agencies’ need.
Linked to the “Information Interoperability Framework Plan” that enables sharing of information
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This hints towards developing organisational capability
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Focus on Supply Chain Operations Reference Model (SCOR)
There are numerous functional frameworks
Sometimes known as “enterprise models”
We will focus on SCOR to illustrate organisations as functional systems
We will discuss CMMI as part of process maturity
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SCOR Framework
Supply Chain Council (SCC, supply-chain.org)
Global non-profit organisation whose framework, improvement methodology, and benchmarking tools help member organisations make dramatic and rapid improvements in supply chain performance
The Supply Chain Operations Reference model (SCOR)
“World’s leading supply chain framework” linking business processes, performance metrics, practices and people skills into a unified structure
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Support for SCOR
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Organisations that have applied SCOR to help:
with supply chain problem solving
process improvement
process redesign
or business process engineering
have demonstrated that SCOR is an effective enabler for aligning an organization’s portfolio of improvement projects with strategic goals and objectives.
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Hierarchy of Processes included in SCOR
Generic Processes:
Plan
Source
Make
Deliver
Return
Enable
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Metrics provide diagnostics for the overall health of the supply chain. These metrics are also known as strategic metrics and key performance indicators (KPIs).
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SCOR Contains Four Levels of Process Abstractions
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Hierarchy of Metrics
The SCOR process reference model contains metrics
A metric is a standard for measurement of the performance of a process.
SCOR metrics are diagnostic metrics
Just as the process elements are hierarchical, performance metrics in the SCOR model are also hierarchical
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Best Practice Driven by Metrics Hierarchy
Level 1 metrics are diagnostics key performance indicators (KPIs) for the overall health of the supply chain. Also known as strategic metrics. Level 1 metrics establish targets that support strategic objectives.
Level 2 metrics serve as diagnostics for the level 1 metrics. The diagnostic relationship helps to identify the root cause or causes of a performance gap for a level 1 metric.
Level 3 metrics serve as diagnostics for level 2 metrics.
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Justifications for SCOR
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Employ the SCOR framework at your organisation and:
Increase the speed of system implementations
Support organizational learning goals
Improve inventory performance
Rapid assessment of supply chain performance
Clear identification of performance gaps
Efficient supply chain network redesign and optimization
Enhanced operational control from standard core processes
Streamlined management reporting and organizational structure
Alignment of supply chain team skills with strategic objectives
A detailed game plan for launching new businesses and products
Systematic supply chain mergers that capture projected savings
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References
Samuel H. Huan, Sunil K. Sheoran, Ge Wang, (2004) "A review and analysis of supply chain operations reference (SCOR) model", Supply Chain Management: An International Journal, Vol. 9 Issue: 1, pp.23-29
Archie Lockamy III, Kevin McCormack, (2004) "The development of a supply chain management process maturity model using the concepts of business process orientation", Supply Chain Management: An International Journal, Vol. 9 Issue: 4, pp.272-278
Gordon Stewart, (1997) "Supply‐chain operations reference model (SCOR): the first cross‐industry framework for integrated supply‐chain management", Logistics Information Management, Vol. 10 Issue: 2, pp.62-67
Australian Government Information Interoperability Framework, 2006, Australian Government Information Management Office (AGIMO), Departme
H. J. Scholl and R. Klischweski, "E-government integration and interoperability: Framing the research agenda," Int. J. Public Adm., vol. 30, no. 8--9, pp. 889—920.
CMMI Product Team. (2002). Capability Maturity Model® Integration (CMMI), Version 1.1. Pittsburgh PA: SEI CMU.
Paulzen, Oliver; Doumi, Maria; Perc, Primoz; and Cereijo-Roibas, Anxo, "A Maturity Model for Quality Improvement in Knowledge Management" (2002). ACIS 2002 Proceedings. 5. http://aisel.aisnet.org/acis2002/5
Ashworth, C. M. 1988, Structured systems analysis and design method (SSADM). Information and Software Technology, 30(3), 153-163.
Dumas M., La Rosa M., Mendling J., Reijers H.A. (2013) Introduction to Business Process Management. In: Fundamentals of Business Process Management. Springer, Berlin, Heidelberg
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