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In order to enhance their performance, many organizations have initiated change projects. However, management is reluctant to initiate them due to their enterprise-wide impact and costs that are higher than those of traditional system development projects. Thus, there is a need to assess the value of the redesigned process of a successfully implemented organizational change projects. The purpose of this study was therefore to assess process improvement from organizational change in the areas of resource utilization and allocation and cycle time and cost reduction. The candidate process and design alternatives were identified from organizational requirements analysis. The variables and their relations were defined to perform task activity analysis, bottleneck analysis, cycle cost analysis, and resource utilization analysis. A case study of a manufacturing company indicated that the assessment method was a promising approach for identifying alternative processes that leads to better organizational performance.

Companies redesign business processes to achieve improvements in their performance (such as better service and quality). Practitioners and researchers have suggested organizational change using information technology (IT) to alter organizational structures and boundaries [16] and [21] and help redefine industry structure and competition [4]. Organizational change or related concepts such as business process redesign or reengineering (BPR) and organizational transformation have been the most important issue faced by IS executives since the early 1990s [27]; in fact, in 1994 nearly two-thirds of IS executives indicated that their firms were undertaking organizational change projects [12]. Many firms have redesigned existing business processes to achieve significant performance improvement. Successful organizational change, which is not always radical, requires effective formulation of process alternatives, their evaluation, and implementation of the selected process. Many companies, however, are quick to attempt to “radically design” business process without a comprehensive analysis of its impact [15]. This often leads to irrevocable process change that yields little improvement in organizational performance. Hence, it is necessary to assess the value of the change by examining the expected performance of the alternatives. The most common reasons that people resist change include a belief that it does not make sense for the organization or there is a misunderstanding of its implications. Hence, the issue of concern is to understand the multifaceted nature of the improvement before its implementation. In an effort to categorize and interpret the potential organizational outcomes of organizational change, this study suggested an assessment model of process improvement that views the organizational outcomes of change initiatives. The required variables and their functional relations were defined to conduct task activity, bottleneck, cycle cost, and resource utilization analyses of the alternatives. These were defined to gain a detailed understanding of the old and future process and to provide an objective basis for the redesign decision-making before firms undertake reengineering. The descriptions of outputs from these analyses are given in Table 1.

The measurement and evaluation of the overall performance of a process before business redesign could contribute to better overall process understanding, lower implementation costs, less organizational resistance, and faster implementation with fewer complications during organizational change. Our study suggested an executable model for the assessment of process improvement from change. The four analyses – Task Activity, Bottleneck, Cycle Cost, and Resource Utilization – were performed by structuring spreadsheets that accommodated the required data sequenced according totheassessmentframework.Eachanalysisemphasized its own set of considerations and importance, and this provided a broader view of process improvement as well as an enriched understanding of why, where, and how to apply organizational change. The results provide companies interested in redesigning their business processes with a mechanism for producing information related to future performance. The reluctance that makes firms unwilling to make investments in organizational change often stems from a lack of a consistent and effective ways to document and track the nature and extent of its impact. Our analysis can partially overcome such challenges by numerically assessing the relative utility of each alternative in process improvement.