OSM 652 Chapter 3

CHAPTER 3
CREATING VISION AND ESTABLISHING GOALS

b)
Mission
Why do we exist? What is our purpose?
Vision
What will we look like in the future? What do want to become?
1.
Goals and objectives

What are the long- and short-term accomplishments that will enable
us to fulfill our mission and attain our vision?
Policy
What guidance will we provide to the many individuals in our
organization as to how they should provide products and services to
our customers?
1.
2.
3.
4.
5.
6.
What makes a vision powerful?

Specificity: concreteness
Customer focused: recognized the future business relies on
strategic role of customers
Integrates process, people, and technology
Bedrock changes
Create a new reality: Believing is seeing
Express the desired valued of the new organization
Tunnel Vision
BR goals can also suffer from a narrowness of
perspectives
Many people believe that what they see is all there is
that the walls of their tunnels are permanent and
impenetrable
People must begin to think outside the box
3.
Habitual Thinking
Is a serious barrier to reengineering
History, culture, experience and beliefs all come
together to create though patterns that seem to work
4.
Practical Thinking
Is one of the most cunning and seductive enemies of
business reengineering
It is often disguised as we need to get the results
quickly, or this is going to cost too much, and other
realistic objections
Establishing Goals
Goals provide top-down guidance and work priorities
Goals frame and focus the reengineering effort by:
Specifying the expected business outcomes the tangible

products and services to be produced by the reengineered
operation; these outcomes must be customer focused.
Include the measures that will be used to assess the

quality of products and services time to produce, time to
deliver , percentage of resources used, involvement of
how many personnel, percent accuracy , etc.
Stretching the organization to change, proactively creating

the future.
Exploding the perceptions of the past and current beliefs

that may not apply to future scenarios
Assuming that whatever must be done to satisfy customer

needs will be done
1.
Methods to overcome
Vision Idolatry
Present vision building and goal setting as a process, not an
event.
Involve as a many people as appropriate in the drafting and
revision process.
Establish a means for gathering suggestions from the
organization to improve or change the vision and goals.
In light of the changing environment and suggested changes.
2.
Tunnel Vision
Participant should be encouraged to:
Use their imaginations
Focus on what could be, not what is
Envision two and five years into the future, even more if
possible
Be proactive, not reactive
Consider all point of view
Set aside biases and assumptions
3.
Habitual Thinkers
Br must be given opportunity:
Explore the effects of their biases and world views
Practice trying on new ways of thinking
Build multiple scenarios of the future
Reframe the business improvement opportunity in a

variety of context
Experience and relish ambiguity
Shift and change their perspectives on time
Establishing Goals
Visioning and Goal Setting
1. Provide training on the characteristics and components of a
vision
2. Develop the vision for the business reengineering project
3. Use facilitated workshop sessions, focus groups, or written
feedback, gather reactions, comments, and suggested
changes, additions, deletions to the vision from all those
affected by the vision
4. Provide training on goal setting and measurement
5. In facilitated workshops sessions conducted with the
reengineered project team:
a) Identify the business products and services of the
reengineered operation. Use brainstorming, nominal
Problems encountered include

Vision Idolatry
When people create visions and goals they believe in,
they naturally feel a strong sense of ownership.
What begins as excited commitment can turn into rigid
adherence to a new set of rules, instead of an ideal, the
vision becomes an idol to be worshipped.
2.
Values
What do we believe in? What do we want everyone to abide by?
Methodology
How are we going to move toward our vision and accomplish our goals
and objectives?
group technique, and consensus building to generate

ideas and commitment.
Develop measures for assessing quality of products and
services. Measures should be customer focused and
quantifiable and include several targets or standards
4.
Practical Thinking
BR facilitator can use:
Map the groups orientation toward practical

thinking and use this as a way to recognize
biases during BR session.
Use games and exercises to build awareness
of the consequences of pragmatic thinking.
List factors people use to judge ideas or
suggestions to eliminate practical ideas.
Sizing the Projects

1.
Scoping the project
To identify key process and this is a critical stage
Six rules to define clearly the scope of the project are:

1) Limit the project to no more than seven and no fewer
than four interrelated processes
2) Scope should not exceed the control or influence of the
highest-level person sponsoring the project
3) Process included in scope must relate directly to the
vision
4) Include only those processes that are broken; that is,
not working
5) All processes included in scope must share inputs and
outputs
6) Processes include in scope will share a common culture
2.
Setting projects boundaries
Easy to identify the units responsible for performing the

processes and supplying inputs or receiving output through
the interface
People within the units directly affected by the BR project
Easy to identify and select executives, managers and

professionals to be members of the BR project
3.
Time Available to Complete the Project
Must extremely be realistic in expecting how long it actually

takes to reengineer a business operation
Depend upon the following factors:

1. Number and complexity of business processes
2. Severity of the changes
3. Number and size of organizations directly involved
and
4. impacted
5. Amount and type of new technology applied
6. Resistance of the culture to change
4.
Resources for the Project
Three resources are financial, facilities, equipment and

human
Common mistakes:
1) Investments focus on the technology rather than on
changes to business policies and practices and training
2) Technology development proceeds without clear and
definitive specifications of performance for transactionprocessing and information needs
3) Human support for implementation is not made
available
4) Measures to monitor progress are not an integral part
of the implementation
5.
Project Sizing Critical Factors
Number of business processes
Diversity of business processes
Number of organization units
Organizational relationships to processes
Organizational politics
Risk-aversion nature of the culture
6.
Root Cause Analysis
The goal is to look systematically beyond the symptoms of

a problem to find its actual
cause
It is fundamental to TQM methodology as well as BPR.

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CHAPTER 3

CREATING VISION AND ESTABLISHING GOALS

Goals and objectives

What makes a vision powerful?

Goals frame and focus the reengineering effort by:

Specifying the expected business outcomes the tangible

Include the measures that will be used to assess the

Stretching the organization to change, proactively creating

Exploding the perceptions of the past and current beliefs

Assuming that whatever must be done to satisfy customer

Use their imaginations

Focus on what could be, not what is

Be proactive, not reactive

Consider all point of view

Set aside biases and assumptions

Explore the effects of their biases and world views

Practice trying on new ways of thinking

Build multiple scenarios of the future

Reframe the business improvement opportunity in a

Experience and relish ambiguity

Shift and change their perspectives on time

Problems encountered include

group technique, and consensus building to generate

Map the groups orientation toward practical

Sizing the Projects

Scoping the project

To identify key process and this is a critical stage

Six rules to define clearly the scope of the project are:

Setting projects boundaries

Easy to identify the units responsible for performing the

People within the units directly affected by the BR project

Easy to identify and select executives, managers and

Time Available to Complete the Project

Must extremely be realistic in expecting how long it actually

Depend upon the following factors:

Resources for the Project

Three resources are financial, facilities, equipment and

Project Sizing Critical Factors

Number of business processes

Diversity of business processes

Number of organization units

Organizational relationships to processes

Risk-aversion nature of the culture

Root Cause Analysis

The goal is to look systematically beyond the symptoms of

It is fundamental to TQM methodology as well as BPR.

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