Business re-engineering—a strategy-driven approach

Organizations across a wide range of industries are recognizing the potential of re-engineering to deliver discontinuous leaps in performance. The competitive climate, and the pace of change within and outside the firm are also encouraging a more co-ordinated and fundamental approach to the planning and design of business activity. Two main approaches to re- engineering have emerged. The first—known as Process Re- engineering—offers the opportunity to rethink and streamline individual processes. The second—termed Business Re- engineering—provides an approach to rethinking and redesigning the entire business behind a more focused, competence based competitive strategy. The central challenge in re-engineering is to understand where and how we can create value for both customers and shareholders. This requires us to ask fundamental questions about what we do, how we do it, whether it is necessary and how it can be improved. Achieving the benefits of re-engineering demands active commitment and participation from the chief executive downwards. The re-engineering process itself needs careful planning around a clear vision of longer term goals. There are also risks inherent in undertaking these far reaching and fundamental changes. To address the risks, manage the fears, uncertainties and doubts and yet maintain motivation in the organization, demands a commitment to change management on a scale which few executives will have experienced.     

Changing Business Models and Employee Representation in the Airline Industry: A Comparison of British Airways and Deutsche Lufthansa

In recent years, the notion of business models has gained momentum in management research. Scholars have discussed several barriers to changing business models in established firms. However, the national institutions of market economies have not yet been discussed as barriers, even though they can constrain the latitude of action of a firm's management. Based on interviews and a longitudinal content analysis, we analyse the extent to which full service carriers in two countries (British Airways in the UK and Deutsche Lufthansa in Germany) have adopted elements of a low cost model over time. Furthermore, we investigate how this process has been influenced by the differences in each national institutional context. We particularly focus on the role of the rights of employee representatives in changes in business models. Our results show that British Airways has moved its business model more in the direction of low cost carriers than Deutsche Lufthansa, although the business model of the former airline still differs significantly from that of a typical low cost carrier. We identify national institutions that potentially strengthen the position of employee representatives as a factor that can influence, and also act as a barrier to, business model change.     

Mapping the organization a methodological approach to organizational change initiation

facturers have realized that in order to survive in this market a new way of doing business is required. Initiating and planning changes is the focus of this paper, which describes a new methodology developed with the Israeli Military Industries. The methodology is designed to promote and initiate change in operations by defining a well-structured approach to Abstract. The defence industry is facing a shrinking market and tough competition. Most defence contractors and manu     

Emerging organizational forms: Work and organization in the 21st century

This article begins with the premise that there is continuous and accelerating change in the Western World in the nature of work and how it is organized. An important contributory force is information technology — itself changing rapidly.When the dynamics of the external environment of organizations are added to changes in IT, we will see new forms of organizations evolving in the business world, such as the ‘starburst’ and ‘internal market’ structures.Michael Scott Morton supplies a diagram to illustrate the framework of research which the ‘1990s’ program at MIT is following — how to balance the dynamic tension between external forces and the internal dimensions of organizations to reward shareholders adequately. He refers to one of Peter Senge's ideas in The Fifth Dimension which is central in creating an organization which learns how to innovate constantly: System Thinking — the search for systemic patterns. It reinforces Scott Morton's argument, and seems a particularly appropriate discipline in a continuously turbulent business environment.     

A strategic model of communications demand

Strategic planning of telecommunications supply takes place in an increasingly turbulent environment due to factors such as the development of new and improved telecommunications services, the convergence of computing and telecommunications technologies and the emergence of the information society. This article is concerned with a model of future communications demand, developed under a research contract placed by British Telecom. The model describes dynamic trends in the supply and demand for communications products and services over a 30 year time horizon. Some key model features are outlined and an overview of the computer programme is given. The aim of the project was to provide decision-makers with a flexible, analytical tool for the exploration of policy issues and environmental impacts. The model should not be viewed as a forecasting tool but as an aid to structured thinking and the rapid assessment of alternative scenarios.     

Reflections on customers’ primary role in markets

Technology developments have transformed the business landscape by accelerating connectivity, transparency and unpredictability. We argue that the most dramatic consequence is not the possibilities created for companies but rather the challenges that emerge as a result of customer behaviour undergoing fundamental changes. Technology transformation has paved the way for empowered customers who are increasingly influencing businesses and markets, and the challenge for practitioners and researchers alike is to make sense of the role of these customers in such business environments. These developments have yielded a need to revise companies’ business models and to innovate new offerings. In scholarly research on marketing, this need has become evident and, beyond suggesting new concepts, completely new marketing management perspectives have been proposed, and each has its own core assumptions and focus. Broader views have emerged, and these stress the applicability of these perspectives not only to the top-level management of businesses but also to any non-commercial organisation.In this article, we reflect on the customer-dominant logic (CDL) of marketing, which stresses the customer's primary role in business. As such, CDL differs from approaches that focus on the provider's perspective. The CDL approach is an expression of the research ideals and goals that are based on the Nordic School of Service Management. We argue that CDL is well aligned with emerging challenges in most markets, both established and nascent, and that it is more managerially relevant than many other perspectives. This is also in line with the recent calls for a soul of relevance for European management research (Chia, 2014; Hernes, 2014).     

Planning vs strategy—which will win?

The author describes some of the changes that are taking place in strategic planning at General Electric—a company which is trying to be the most competitive enterprise in the world. He explains why these changes are necessary, the problems of implementation and how they are working out.     

Systems thinking and business process redesign: An application to the beer game

Managers are regrettably ignorant of the fact that their business organisations are ‘designable’. But recently, concepts such as business re-engineering and systems thinking, coupled with advances in methods of quantifying business systems, have enabled managers to scrutinise their business systems afresh.Ann van Ackere, Erik Reimer Larsen and John Morecroft use a well-known logistical system — the ‘beer game’ — to illustrate these re-engineering concepts and tools in a multi-stage production and distribution system involving a single brand of beer. This business game raises the fundamental question of why it is so difficult to match shipments and factory production to consumer demand.The authors conclude that such re-design concepts and tools can be applied successfully to full-scale business problems. Systems thinking, modelling and continuous time simulation can provide the framework for carrying the design process from mapping all the way through to redesign. The most effective CEOs of the future will be those who are competent to create corporate design in which employees are allowed to succeed.     

Using IT for competitive advantage at Thomson holidays

This article describes how information technology was used to improve productivity and customer services in the travel and package holidays business. Information plays a vital role in services businesses such as this one and its introduction and development had a dramatic impact on turnover. The author emphasises that IT strategy and investment cannot stand still, no matter how successful—and it must constantly be developing and extending to assimilate new technologies.     

Archetype Change in Professional Organizations: Survey Evidence from Large Law Firms

This paper examines the proposition that the traditional archetype of the professional partnership is said to have changed into a more 'business-like' entity, the managed professional business. It broadens the restricted case sample base on which much of the evidence has been adduced, by developing a survey questionnaire through which 197 large British law firms were sampled. Change, consistent with the notion of a more commercially oriented and consciously managed organization, is concentrated in the market-facing area of the firm but coexists with areas of continuity in the governance of the firm and its strategic management. The findings reveal a more managerial form of organization in which the core elements of the traditional form of professional organization have not been transformed. These results contest the assertion of either transformational or sedimented change found in other, case-based research and suggest that archetype change needs theoretically to be distinguished from the general phenomenon of greater managerialism within the professional service firm.     

Competitive strategies in the Dutch insurance industry

Strategies formulated by companies are always an anticipation of or a reaction to environmental changes. This article describes the changes that have occurred in the environment of Dutch insurance companies. The well-known Porter model is used to describe the developments in the industry over a time-span of more than 10 years. These developments have resulted in a less attractive business environment. The larger Dutch insurance companies have reacted to this new environment in four major ways—internationalization; concentration; moving closer to the customer; acquiring bank-like activities.     

The electronic ‘go-between service provider': a new ‘middle' role taking centre stage

While the full impact of the Internet on traditional business models and strategies is yet to be played out, one thing is already certain: it will irrevocably challenge the nature of the traditional middle role. A full spectrum of Internet-driven consequences — from disintermediation to cybermediation — has already been observed by numerous academics and practitioners. This article describes a different intermediary: the ‘go-between service provider,' who is increasingly challenging traditionalists benefiting from the new market and economic dynamics of our time. This paper, based on case studies and interviews as part of a long-term research project, presents a conceptual framework; lists critical success factors; and assesses the impact of all this on corporate thinking and practice.     

Definitions and linkages between operational and strategic flexibilities

This paper aims at clarifying the concept of strategic flexibility, starting from that much more common of manufacturing flexibility (or operational one). After characterizing the dimensions of the latter, a classification of strategic flexibility is presented which distinguishes four categories. The measures of strategic flexibility are also investigated. Then two analogies are pointed out with the operational flexibility. The first, of the cause-effect type, is on two levels: at the business level, the operational flexibility estimates the variation of practices, while the strategic flexibility measures the effect obtained on performances; at the corporate level, the operational flexibility estimates the variation of competences, while the strategic flexibility evaluates the change in business. The second analogy, related to the classification variables, permits the main types of operational and strategic flexibilities to be placed in a single framework. So this study seeks to provide a framework—which has not been proposed in prior literature—for analyzing and evaluating the correlated concepts of operational and strategic flexibilities, to create a theoretical foundation for future research and empirical testing.     

Strategic planning as an organizational change process—Some guidelines from practice

Learning to cope with the problems and uncertainties created by today's changing business environment is a task which faces ever company. Coping with the challenge of change is not just a question of adapting or reacting to the changes, it may also involve taking new initiatives in relation to the environment itself in order to exploit the opportunities which exist.A company may need to make fundamental adjustments to its philosophy, strategies, organization and practices in order to meet the newer demands of the environment. A prime difficulty is that companies are rarely in a position to start from scratch, they have existing organizational arrangements, power distributions, well established strategies and vested interests all of which tend to resist any kind of change which is likely to upset the ‘status quo’. They also have to overcome outdated beliefs and norms if they are to progress.This article considers the use of a modified approach to strategic planning as a mechanism for helping a company to acquire the norms, organization and strategies needed to cope with today's business environment. It is based on experience gained in helping to re-organize business enterprises engaged in textiles, steel tube manufacture, light engineering, distribution (world wide) and vehicle sales and servicing and also the Government of Jersey, Channel Islands.     

Navigating institutional change: An historical perspective of firm responses to pro-market reversals

We explore the strategic responses of multinational enterprises (MNEs) in the context of protracted institutional change. Analyzing the long-run trajectory of three British MNEs during the setting of Indian independence, we find that these firms engaged in a series of tactical and strategic responses to address uncertain institutional changes in the form of pro-market reversals. Our findings reveal how MNE responses are characterized by path dependence and path creation in that they are historically conditioned by patterns of previous decisions and actions. We demonstrate how tactical responses to earlier institutional changes coalesce to shape dominant strategic responses in later periods. Our paper contributes to a more holistic conceptualization of how MNEs strategize in response to pro-market reversals by integrating a business history lens.     

The use of futures research in product planning

Planning for change means, in effect, the need to manage change. That being so, the topic can be approached from a planning standpoint. This article looks at the problem first from a theoretical aspects—what techniques can be used in detecting developments which can affect the products to be marketed in the future. The second part describes the use of these techniques.     

Corporate environmental policy in Shell

In the last decade there has been a radical change in public attitudes to the environment—a change initiated by a young ‘green’ movement, which, years ago, was trying to make its real concern heard in both government and industry. Governments were seen to have little concern for the environment, and industry was typecast in the role of the dirty polluter. Most significantly, the three parties were seen as sitting in separate camps. Over the years, however, we in industry were forced to think our actions through towards their logical environmental conclusion. We were forced to develop an environmental appreciation which we did not have some time ago. In turn, the environmentalists and governments started to realize that industry is an essential player in society, and that balances can be struck which benefit both society and the environment. We have much to be grateful to these green pioneers for, even if we sometimes find that difficult to admit. This process resulted in industry, government and the ‘green’ movement learning to talk to each other. Dialogue, is most important if we are to ensure the continuation of a world fir for our children and grandchildren to grow up in. Dialogue ensures that the tide of change continues. In that process business should become part of the environmental solution, the provider of the resources needed to improve our world for the better rather than being portrayed as the problem.     

Maintaining Relevance in Business Education. A Framework for Exploring Alternative Teaching Paradigms

Relevance has become a critical factor in business education programs. Such programs must deliver the skills and knowledge that enable participants to learn and thrive in a context of change, growing business complexity and technological sophistication. This paper explores the need to realign our teaching approach to the new demands of business managers in pursuit of maintaining relevance. It considers the changes this requires in the learner: teacher relationship, and the way in which information communication technologies have a powerful role to play in developing and managing this new relationship. A model is proposed to explore the alternative teaching paradigms associated wich might be best described as seismic shifts in the learning landscape. For educators it suggests a change in teaching values that emphasise stronger attention to process skills, less teacher autonomy, direction and control, and a more creative use of technology to encourage diversity, dialogue and distributed team learning. This revised version was published online in July 2006 with corrections to the Cover Date.     

Advancing Theory and Research and the British Journal of Management

In an ecosystem of management journals dominated by US heavyweights, the British Journal of Management (BJM) assumes a unique role. There is no other European business and management journal of the standing and stature of this journal that seeks both to be multidisciplinary and to appeal to a general readership of business and management scholars. This is a tribute to the efforts of previous editorial teams. At the same time, the journal faces the challenge of remaining relevant both to the immediate British Academy of Management community and to the wider scholarly one, while raising its own game in pioneering and leading debates, and in global esteem.     

From communism to market: business models and governance in heritage conservation in Poland

The paper focuses on the effect of business model and governance changes on conservation and access outcomes in three heritage sites in Poland: Ksiaz Castle, the Shrine of Our Lady of Grace Abbey and the Jelenia Gora Valley historic palaces. It argues that the interplay between business model and governance led by relevant political, administrative and economic changes has an impact on which historic buildings are conserved for future generations, in what form, and with which functions. Findings from the case studies allow us to design three ideal business models for the management of heritage sites. The paper also explores implications for management research regarding business model and public sector change.