Managing organisational change using operational analysis
A rapid and substantial organisational change might be required for a number of reasons, including natural development and growth, new or changed customer requirements, an imperative to streamline business processes, or an identified opportunity to add value. Once a need for change has been identified a business case should be developed, detailing the anticipated benefits of the change and providing an effective roadmap for how to proceed.
Comparison of different options for the way forward is an essential part of business case development. This comparison can be complex, particularly where change is to be enabled or supported by disruptive new technologies. Operational Analysis (OA) is an interdisciplinary science which supports management decisions and is particularly useful for comparing different options for business change or developing a new business.
First steps
Key stakeholders should be identified during the early planning stages of OA and must remain engaged throughout its conduct. Stakeholder engagement at this early stage is essential to:
- identify and prioritise the requirements of the organisation, using these to develop and agree a set of business benefits against which the options for business change will be tested;
- determine a set of (typically five or six) options that are worthy of detailed consideration;
- elicit details of the organisation's processes to support development of process models.
The options to be tested and criteria for the OA should be documented, along with outline detail of the relevant business processes and a layman's description of the proposed process models, in a Concept of Analysis (CoA) document.
Conduct of the analysis
OA requires both the relative effectiveness and expected cost of each option to be estimated, through the conduct of a Combined Operational Effectiveness and Investment Appraisal (COEIA). Effectiveness might be estimated in terms of the level of capability delivered by each option, or by testing the delivered capability within the context of possible scenarios that might arise. The cost analysis should include development costs for any new capabilities and should consider through life service costs and other costs such as manpower requirements. Any likely cost savings, for example due to improved efficiency or reduced overheads, should also be taken into account.
Study outcomes
The outputs of the COEIA should be documented in an Operational Analysis Support Paper (OASP). This will enable senior management to determine which option provides the greatest benefit, best value for money, least risk or meets some other key criteria, subject to the anticipated level of financial, human and other relevant resource.
The goodwill of stakeholders is essential in order to drive through the required change. As such, the decision-making process should be transparent to scrutiny. The decision made must not only be the right one, but must also be justifiable.