Prinples for the setup of the system for change

  • Value vs Risk; when we model the processes, we need a difference between activities which create value and activities which mitigate risk.

  • Standard vs Specific; when we model a process we must make it clear if it is a standard (common) processs or a specific process.

  • Technical vs Functional vs Organisational; for the initial start of the system for change, we need various disciplines to build the system.

  • Policy vs Standard vs Manual; the governing documents related to Management of Change

Value vs Risk

the key differences between added-value and risk-control activities
  1. Purpose: Value-creating activities aim to add value to the business by enhancing its products or services, while risk-control activities aim to minimize the negative impact of uncertainties and threats.
  2. Focus: Value-creating activities focus on opportunities for growth and innovation, while risk-control activities focus on identifying and managing potential threats and vulnerabilities.
  3. Impact: Value-creating activities contribute directly to revenue generation and market competitiveness, while risk-control activities contribute to the stability and resilience of the business by reducing the likelihood and impact of adverse events.
  4. Measurement: The success of value-creating activities is often measured in terms of customer satisfaction, market share, and financial performance, while the effectiveness of risk-control activities is measured in terms of risk reduction, compliance adherence, and incident response capability.

In summary, while both types of activities are essential for the success of a business, they serve different purposes and require distinct approaches to management and measurement. Finding the right balance between value creation and risk control is crucial for achieving sustainable growth and profitability.

  • Value-Creating Activities

      • Primary Focus: Value-creating activities are focused on generating value for the business and its customers. They directly contribute to the production, delivery, and enhancement of products or services.
      • Examples: These activities include product design, manufacturing, marketing, sales, customer service, and innovation.
      • Outcome: The outcome of value-creating activities is usually the creation of goods or services that customers are willing to pay for, leading to revenue generation and ultimately profit.

  • Risk-Control Activities:

      • Primary Focus: Risk-control activities are focused on identifying, assessing, mitigating, and managing risks that may threaten the achievement of business objectives.
      • Examples: These activities include risk assessment, internal controls implementation, compliance monitoring, fraud detection, and cybersecurity measures.
      • Outcome: The outcome of risk-control activities is the reduction of potential losses, avoidance of regulatory penalties, protection of assets, and safeguarding the reputation of the business.

Standard vs Specific

In principle, we model standard processes. When required by local laws & legislation, or by organisational issues, specific processes may be established for one or more units. Deviate from standard solutions must be aligned and discussed with the related BFO (Business Function Owner). This to avoid any conflict with Customer values and local requirements. Deviation should be logged with reference to the requirement.

If an object ( function, process, workflow, activity, role, business event, business rule) is specific for a country, business line or site, the relevant Category shall be entered in the field “Scope”. The Category shall be included in the title and put in brackets.

The following Category are valid;

  • country code
    • for example; NL, DE, AU, BE, …..
  • product group
    • for example; Services, products

In case of a standard object, all Category shall be included in the field “Scope”.

As a result, we will have standard and specific business process in our model. They will be related to each other via Variant Management. In that sense a Business Event which links to a specific business process, needs to include the Category in the Name.  If a Business Event links to a standard business process it shall not have a Category in the name and in Variant Management this process is classified as <<template>>.

Specific process flows should be logged with reference to the reason for deviation from an already existing way of working. Variations of a standard processes should be clearly marked as belonging to the same ‘family’ in Variant Management. Every change in a standard process should be assessed for changes in local variations and vice versa. The approval of a variation is authorized by the global function responsible.

In order to identify the variations of a standard process, the standard process is mentioned in Variant Management as <<template>>, the related specific business processes are marked as variant.

Technical vs Functional vs Organisational setup

The purpose of setting up a system for management of change is to establish a structured framework that enables organizations to effectively plan, implement, and monitor changes in processes, procedures, or systems. This system aims to minimize disruptions, mitigate risks, and optimize outcomes by providing clear roles, processes, and communication channels, thus fostering adaptability and resilience within the organization.

Technical Setup

The technical setup of a system for management of change refers to the infrastructure, tools, and software utilized to facilitate and track changes within an organization’s processes, procedures, or systems. It typically involves the implementation of software solutions, databases, communication platforms, and workflows designed to assess, approve, implement, and monitor changes effectively while minimizing risks and disruptions to operations.

Functional setup

The functional setup of a system for management of change involves the definition of te scope, business elements, diagrams, facts, processes necessary to effectively plan, assess, approve, implement, and monitor changes within an organization. This includes defining policies, decision-making protocols, modeling conventions, procedures, and communication channels to ensure that changes are properly evaluated, authorized, and executed while minimizing disruptions and maximizing positive outcomes.

Organisational setup

The organizational setup of a system for management of change involves establishing the roles, responsibilities within an organization to support effective change management practices. This includes defining leadership roles, function- and process owners, establishing change management teams, allocating resources, and fostering a culture that embraces and facilitates change. It encompasses communication strategies to ensure alignment, transparency, and collaboration across the organization during periods of change.

Governing documents for Management of Change

Setup documents

“Utilizing governing documents for the management of change is paramount in ensuring a structured and efficient process. These documents serve as the blueprint, outlining procedures, responsibilities, and guidelines for implementing any modifications within an organization. By adhering to these established protocols, we not only mitigate risks but also maintain consistency, transparency, and accountability throughout the change management lifecycle. Ultimately, leveraging governing documents empowers us to navigate transitions smoothly, fostering adaptability and resilience in our dynamic environments.”

  • Policy; a formal statement or set of principles established by an organization to guide decision-making, actions, and behaviors within a specific context.

  • Standard; a documented set of criteria, specifications, guidelines, or requirements established by a recognized authority, industry consortium, or consensus-based organization.

  • Manual; a comprehensive document or guidebook that provides detailed instructions, procedures, and information for performing tasks, operating equipment, or implementing processes within a specific context or domain.