Transformation: The Holistic-Path Approach
By Sam Lee
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The concepts is developed with empirical evidence of its application and the support of various theories to support its validity and generalisability.
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Transformation - Sam Lee
Copyright © 2019 Sam Lee. All rights reserved.
All rights reserved. No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the publisher except in the case of brief quotations embodied in critical articles and reviews.
www.partridgepublishing.com/singapore
Because of the dynamic nature of the Internet, any web addresses or links contained in this book may have changed since publication and may no longer be valid. The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.
ISBN
978-1-5437-5449-0 (sc)
978-1-5437-5451-3 (hc)
978-1-5437-5450-6 (e)
Library of Congress Control Number: 2019918591
11/25/2019
19699.pngTRANSFORMATION
19622.pngThe Holistic-Path Approach
SAM LEE
TABLE OF CONTENTS
Preface
Chapter 1 Introduction
Chapter 2 Foundational Understanding
Opening Statements
Introduction
Building the Foundational Understanding of Holistic Path Approach
What Is Transformation?
External Factors
Internal Factors
Why Transformation?
Transformation Contexts
Dimensions of Transformation
Scope and Magnitude of Transformation
Path Concept
Why Path Concept?
Holistic Approach
System Perspective
System Structure
Process
Subsystem and System
System and Holistic Approach
Holistic Path Approach
Interconnectivity and Intraconnectivity
Transformation as Path-Dependent
Goal Setting, Objectives, Measurements, and Feedback
Chapter Summary
Chapter 3 Planning for the Transformation Process
Introduction
Defining the Strategic Direction of the Organisation
Determining the Strategic Gaps
Classification of Issues
Mapping of Issues
The Starting Point
Determine the Path
Influences of Path Determination
Path Design
Preparation for the Start of Transformation
Define Process Changes Needed on a Limited Scale
Identify the Process Linkages
Determine the Resource and Structure Needed
Assessing Readiness
Identify and Minimise Resistance Factors
Identify Starting Team
Determine the Measurements Linked to the Process Change
The Leader
Attributes of a Leader
Chapter 4 Implementation
Introduction
The First Step
Importance of Process Orientation
The Next Phase
Chapter 5 Sustaining and Critical Success Factors
Introduction
Leadership Factors
Organisational Factors
Implementation Process Factors
Initiating Momentum
Sustaining the Transformation Process
Follow the Path
Managing Inertia
Task versus Process Orientation
Pacing
Organisational Culture
LIST OF TABLES
Table 2.1 Some of the Changes in Ways of Doing Business
Table 3.1 Categorising the Hierarchy of Issues
LIST OF FIGURES
Figure 2.1 Path Illustration for an Effective Supply Chain Implementation Stage 1, 2 and 3
Figure 2.2 Illustration of a Simplified Path by Hierarchy of Level of Competencies
Figure 2.3 Types of Path
Figure 2.4 System Hierarchy
Figure 2.5 A Macro View of an Integrated Business System
Figure 2.6 Selecting Customer Order Processing Subsystem
Figure 2.7 The Micro View of a Sub-system and Connectivity in Customer Order Processing
Figure 2.8 Path Dependency of Cycle Time Improvement
Figure 3.1 Linking Strategy to Transformation
Figure 3.2 Illustration of Issues Mapping and Their Linkages
Figure 3.3 Different Forms of Trajectories
Figure 3.4 Types of Path
Figure 3.5 Illustration of Path Phases
Preface
How often have we heard people saying that business is getting tougher by the day? This is a statement of the truth across almost all businesses. Many enterprises began their businesses through the exploitation of an identified business opportunity. Most of these enterprises encountered some form of difficulties during their growth process. This can be due to a variety of reasons, such as complexity arising from growth, customers’ changing needs, and competition in addition to other external environmental changes.
Organisations today face the ultimate choice of change or demise, yet few organisations are prepared for the magnitude of change that is required of them to survive and thrive in the future. Fewer still understand the nature of changes and how to manage these necessary changes.
In today’s competitive business environment, organisations are being challenged to a magnitude of aspects. They need to improve performance by improving processes, minimising costs, providing better-quality products and services, increasing output, increasing their capabilities through the adoption of new technologies, and so on. Such changes can only be made by looking beyond traditional management systems. Continuous improvement (CI) and total quality management (TQM) have been the focus of recent organisational improvement initiatives. However, in many ways, the results have not been as dramatic as desired. Others may have tried business process re-engineering (BPR), which focuses on innovation and creativity in redesigning processes in an effort to meet customers’ needs and expectations, but the success of the implementation has been less than desired. Lately, many organisations also adopted lean manufacturing concepts to improve performance. These are great programmes that help in improving the performance through incremental changes and are on a selective-function basis. However, these are not effective if a radical change is needed. To cope with the competitive demands, organisations may require transformation that involves multiple disciplines that change from one state to another. In short, they need a holistic approach with a well-designed path.
Most of today’s organisations were built to conform to the classical twentieth-century business model, not based on current and future needs for survival and achievement of competitive advantage. Driven by the ongoing information age revolution and the competitive challenges, the nature of change itself has to be changed. No longer is incremental change good enough. Rapid and dramatic change is the order of the day. Not simply constant change, but a need for an ever-accelerating rate of change. To survive and thrive, organisations must remodel themselves to align to the environment of constant and transformational change. Under the new conditions, companies that do not innovate and transform will evaporate.
Many organisations are finding the old policies, rules, and procedures no longer working, and they have to change to a new way of doing business. Some of these examples are illustrated in Chapter 2. Fundamental to such change are leaders who hold a vision of the need for a new way of doing business and who can create an environment that supports this new way of doing business.
The purpose of this book is to provide the understanding of what transformation is and how transformation can be successfully implemented. It is not intended to be used as a cookbook with solutions. This is because each organisation’s situation is different. However, it is intended to provide the methodology on how to analyse the organisation and determine the planning and implementation of the transformation process. The first part of the book deals with the basic understanding of the concepts used in this book. It focuses on defining what organisational transformation is along with the concepts of holistic path approach. Following this is the planning, designing, and configuring the transformation process. Once the planning is completed, it can then move on to the implementation process. The final part of this book covers some of the pitfalls and the critical success factors for the transformation process. This book uses simple terms and applies many analogies to show the application and help readers understand the content.
The concepts used in this book are the convergence of some of the existing relevant theories with added empirical evidence to relate to their relevance. As there is no single theory that is sufficient in describing the holistic path transformation, various relevant theories are adopted in making this concept relevant. These theories are used to strengthen the validity of this concept and not intended to be used as an educational tool. The theories are embedded within the concept as such. Rather than describing these theories, they are being used in the methodology based on their relevance. Validity is important for any concept. To ensure this, there is a need to have strong theoretical background and support. Empirical evidence is used to demonstrate that this is a practical concept. The empirical evidence is important as it lends support to the theories. Various empirical studies over a wide range of industries are made and are intended to make this concept generalisable to both manufacturing and non-manufacturing organisations. This is not just a book for academic purposes; it is written more for the purpose of helping organisations in managing their transformation process. The style of writing is tuned to application focus, is reader-friendly, and has empirical relevance rather than educational.
CHAPTER 1
Introduction
After years of working in various types of organisations and being involved in lecturing to both MBA and doctoral degrees, I felt compelled to write this book to guide management practitioners, who may find this useful in helping to implement organisational transformation. While there is no shortage of books and journals describing managing organisational transformation, what makes this book different from others is that it is both empirically tested and has theoretical support. Furthermore, it is made simple to adopt and implement the transformation needed. Both the concepts of holistic and path approach are not totally new as many authors have written about these two concepts as discrete approaches in books and journal articles. Integrating these two concepts is rare, and most describe them in the form of their respective theory.
With the rapid changes in the business environment fuelled by competition, customer demands, and globalisation, organisational transformation becomes a necessity for survival. Organisations must develop the flexibility and be able to respond to the competition and market changes. They need to