Business Engineering
Corporate Development  Introduction and Motivation
Dr. Jerzy Surma
Efektywność
procesu (KPI)
Cont. Impr. YES
NO
Czas
BPR, czyli
rewolucja
1
Which market drivers create need for transformation?
Necessary strategic
Market drivers
decisions
Entering new markets
Deregulation
New models of collaboration
- with partners
Globalization
- among affiliate companies
Consolidation
Globalization of processes (e.g.
supply chain planning)
M&A
Differentiation by delivering added
value
Customer orientation
Refocus on competences
Solution orientation
Personalization and emotional
services
Technology
Redesign of enterprise
management
&
Integration of customer-centered
sales channels
2
Corporate transformation ( Rewolucja )
Market/
Mechanics of
Corporate development
transformation
Human being/
Psychology of
Change of behavior and
skills
transformation
3
The  Beer Formula 1
Project management
Mechanics/
 Intellect
+ Project process model
Psychology/
+ Change management
 Emotion
= Transformation management
4
What is change management?
Enabling transformation by change of skills, by the attitude to work and the behavior of
the employees as well as by a change of the environment in which the staff works
(organizational design).
5
What is project management?
Project management produces the final product:
managing people and facilities to produce the end product
Punctuality
Within the budget and financial requirements
According to guidelines
On a quality level, that
 responds to the business needs
 fulfils professional standards
 and is according to the stakeholder s expectations
6
What is a project process model?
Describes a certain project process for a
specific field (e.g. strategy development,
process design, IS/IT planning, process and
system integration etc.)
Defines
 Activities and
milestones
 Deliverables
 Techniques
 Roles
7
The  Beer Formula 2
Ease of change = f (D x M x P)
D = Dissatisfaction (crises, pain felt
over current situation)
M = Model/vision of what the change
needs to achieve
P = Process for change, reasonably
planned but organic enough to
be altered.
8
What are the most important tasks of an executive board?
General classification of corporate activities into
 OPERATIONS
(innovation, production, marketing & sales, HR, F&A)
 TRANSFORMATION
(Re-Positioning)
The most important tasks are  apart from the  sense living -dimension,
 to provide smooth OPERATIONS
 and to manage TRANSFORMATION
9
Corporate transformation
Market/
Mechanics of
Corporate development
transformation
Human being/
Psychology of
Change of behavior and
skills
transformation
10
Integration of strategy  processes  information systems
Target business architecture
Strategy
PROMET®
PROMET®
Target process architecture
Processes
PROMET®
PROMET®
Target IS/IT architecture
Systems
PROCESSES implement the STRATEGY and
SYSTEMS support PROCESSES
11
Business transformation means migration from a current
architecture to a target architecture on all three levels
Current architecture Target architecture
Strategy Strategy
PROMET® PROMET®
PROMET® PROMET®
Processes Migration Processes
PROMET® PROMET®
PROMET® PROMET®
Systems Systems
Migration means executing several projects 
Beer Formula 3: Transformation mechanics = Architecture + migration
12
Corporate transformation
Market/
Mechanics of
Corporate development
transformation
Human being/
Psychology of
Change of behavior and
skills
transformation
13
Question:
What are the basic stakeholder groups of a company
during a change?
14
What are the basic stakeholder groups of a company during a
change?
Executive
Top management
Board
Middle management Front
operations,
back operations
Employees
Where are the  designers ?
Where are those who are  designed ?
15
Staff
functions
The different stakeholders have to be prepared  for what?
Change management requires certain attitudes with all affected stakeholders:
Say Yes, mean Yes
Top Mgmt.:
Shared vision,
Loyalty
leadership
Middle management:
role model,
Trust
communication
Employees:
Willingness and
capability of
change
Where is the largest source of danger?
16
Better to communicate early or late?
Resistance to change
Resistance must be
addressed in an early
stage, so that
stakeholders:
can completely
understand the
consequences of
decisions
can build
commitment to
these decisions
Time
Problem and solution must be clear.
The most important stakeholders must be committed.
Afterwards an early communication to all employees is crucial.
17
Resistance
Question:
Why transformation projects respectively
transformation programs fail?
18
Why transformation projects respectively transformation programs
fail?
Many projects fail due to missing know how and anxieties of employees on
new technologies.
Top 10 reasons for failing projects
82%
Resistance against change
Insufficient support 72%
Unrealistic expectations 65%
Bad project management 54%
Case for change is not urgent 46%
Incompetent project team 44%
Expansion of scope/incertitude 44%
No change management 43%
% of firms
No horizontal process view 41%
No integration of IT perspective 36%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Source: Deloitte Consulting
Change management is a vital success factor in transformation projects.
19